Tax and National insurance

Silverbird65

He was normally monthly paid. The new employer has not used his p45 yet he has been there since 12th Sept and gave his p45 about 2weeks ago. The tax office issued a code to recover £95 tax they said he owes because of something to do with the his last wage not being taxed. It's all very confusing. You have been very kind  and patient helping us understand.
Thank you

tizerbelle

At the new employers, did he get paid before he sent in his P45?  If the answer is yes, this may be why they haven't used his new P45.  On or just before the day you are paid, details are sent to HMRC electronically.  These details may have triggered the new tax code that HMRC told the new employer to use.  If your husband gave his P45 in after HMRC had sent this new code to the new employer, the new employer has to keep using the HMRC code, they can't override it with the P45 code.  

chrisbur

If you want a full explanation the only way is if you give the full details of taxable pay, tax, and tax codes from the P45 part 1A and the latest payslip in the new job along with the year to date figures from the payslip.
Moving from monthly to weekly pay often causes a problem with tax as on monthly you could be given a tax allowance several weeks ahead of the date you are paid, you then move to weekly and one or more of the pay days you then get will not have a tax allowance available as the last monthly pay has used it.  It might be that HMRC have issued a code to spread this out if it has occurred. 

Silverbird65

That sounds like what has happened. They said something about an overlap which we didn't really understand. But if he owes the tax it must be paid. They spread it over the rest of the year. I expect when the new employer finally adds the p45 details it might complicate it. We gave the HMRC the details from the p45 to help. It is just confusing for an OAP like little me😃

Silverbird65

Thanks everyone Much appreciated 😊 Just about getting it. At the end of the tax year we will have to check it out. They may owe us🤣🤣👍

chrisbur

Silverbird65 said:

That sounds like what has happened. They said something about an overlap which we didn't really understand. But if he owes the tax it must be paid. They spread it over the rest of the year. I expect when the new employer finally adds the p45 details it might complicate it. We gave the HMRC the details from the p45 to help. It is just confusing for an OAP like little me😃

If HMRC has issued a tax code then as I think someone has already said the P45 should not be used.  If it is an overlap then if the P45 was used all the back tax would be taken from the next payment made, the tax code issued by HMRC would (if all goes correctly) spread this owed tax out over the rest of the tax year.  I would assume the new code is something a bit lower than the normal P45 tax code and applied on a non-cumulative basis (Looking something like eg week 1 x non cumulative NC)

Silverbird65

Yes it is. I don't want o owe anything.
Thanks